April 19, 2006

Mortgage banking implodes.

Well, maybe the mortgage bankers at Wells can get a job driving the stagecoach

Boy, if I was a mortgage broker or banker, I'd be looking for something new to do with my life right about... now!

Wells Fargo, one of the nation's largest mortgage lenders, felt the impact of the slowdown in the housing market in the quarter. The bank said home mortgage revenue declined 43 percent, from $1.5 billion in the first quarter of 2005 to $853 million in the first quarter of this year.


Towjam said...

Would you like to super size that?

Add to them all the construction workers who were building all the new houses for little profit. (Don’t know about where you are but builders nickel and dime their subs to death here)
I can see how a down turn in housing will ripple out to more then just declining house prices.

Anonymous said...

What happens to the Builder's unsold inventory when they file for BK.

Do all these properties get dumped on the market at an auction fire sale to payoff the builder's creditors?

If so, I would expect hugh discounts over 40% off of orginal asking prices.

Anonymous said...

I drove Interstate 10 for the first time in a long while on the extreme West side of Phoenix today. Out just past Buckeye. I did not have my digital camera but I will make a return trip there just to show HP'ers this . It's a wow!! Talk about overbuilding coupled with overpricing.
Piles of unsold homes. Lots of for sale signs. Just incredible. And here's the kicker. They are still building further west like thre's no end in sight. No one's buying.

Anonymous said...

It's the same in TX. Subdivisions are sprouting up from Dallas north to the Oklahoma border and east towards Louisiana and are stretching south now. The population would have to double in the next 5 years to fill those houses up. Even then, I don't know who would want to live in a subdivision in the middle of nowhere.

Towjam said...

"It's the same in TX. Subdivisions are sprouting up"

Same here lots of cleared land with a few models or specs and the rest is roads to practice driving fast on.:)

autofx in Phx said...

Ah yes, I had heard these were the parts of the Valley that had some big new developments. Lotsa bored & lonely builder salespeople sitting around, I'm sure.

And now, for something refreshing: $75 oil! Isn't that special!

All those ARM buyers can fill up their H2's on the way home today, and when they get home, open their bills on their ten maxed-out credit cards...

KaptainMoney said...

That's funny (the picture - great headline) Anyways, I don't like ARMs. I guess we should stop building houses that people cannot afford. And come back to reality. ARMs is just like renting to me. I think that we can and should be creative in getting a mortgage or in our financing, but this is a plan that's doomed to fail.

Mortgage Note Buyer

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